More arrests in PNB fraud case

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ICICI Bank Chief Chanda Kocchar and Axis Bank Managing Director Shikha Sharma were summoned for interrogation today by Serious Fraud Investigation Office, Mumbai, in the Punjab National Bank scam case. Both bankers were summoned in a case of over 5,000 crore rupee working capital facility given to Mehul Choksi's Gitanjali Group by a consortium of 31 banks. The ICICI Bank, with a loan of around 400 crores, was a lead banker in this consortium, while Axis Bank had a major exposure too.

Investigations into the over 12000 crore rupees PNB scam are underway in full swing. The Serious Fraud investigation office has sent summons to officials of 31 banks for questioning. These include ICICI bank head Chanda Kocchar and PNB bank MD and CEO Sunil Mehta. These summons have been issued in connection to loans granted to Gitanjali Group. Prominent among 31 banks in the Consortium which played a role in the grant of these loans were ICICI Bank and Axis Bank. The CBI on Tuesday arrested Gitanjali Group Banking Operations Vice President Vipul Chetalia. He was brought in for questioning to the CBI office from Mumbai Airport. The Bombay stock exchange has sought clarifications on this issue from 2 banks. In the midst of this, the BJP retaliated to Congress accusations in the Jatin Mehta issue by saying that all benefits were provided by the previous UPA govt and in November 2012 he acquired foreign citizenship. He hasn't returned to India since July 2013. Jatin Mehta was a diamond trader from Gujarat who acquired money from Indian banks and fled the country.

Meanwhile, in the other major corruption case of the day, there was no relief for Karti Chidambaram. The Supreme court has sought replies from the Centre and ED to an affidavit filed by Karti in relation to the money laundering charge that Karti has challenged. The court has, however, refused to stay investigations into the money laundering case. Hearing for this will be held on the 8th of March. Karti's remand was due to end on Tuesday but the court has now extended it by 3 more days

Even as Nirav Modi and Mehul Choksi have fled the country after embezzling funds to the tune of thousands of crores, many of their assets have been seized and investigative agencies are swooping down on bank officials involved in the scam.

The first FIR in the multi-crore PNB scam was filed on the 14th of February. Since then raids have been conducted in nearly 198 locations and arrested 19 persons. Vipul Chetalia is a major player in the case and his arrest from Mumbai could actually be a turning point n the investigations.